ICAI Disciplinary Board Exposes CA Misconduct: Reputation Damage, Secret Recordings & More

The Institute of Chartered Accountants of India (ICAI) has recently taken action against a CA for involvement in professional misconduct during his association with a CA firm.

CA Jayesh Shah, the respondent, was a partner at M/s J Singh & Associates, a chartered accountancy firm of CA Jaleshwar Singh, the complainant, who claimed that Shah had harmed the reputation and goodwill of the firm due to his professional misconduct. The complainant accused that:

• Allegation number 1: Shah has worked for other firms and clients during his association and received payment in his personal account without the knowledge of the firm, violating clause (7) of the partnership deed.

• Allegation number 2: the accused had sent emails to the firm’s clients where he falsely claimed that their firm charges conveyance and out-of-pocket expenses, which had caused harm to the reputation of the firm.

• Allegation number 3: Shah had stolen the original copies of the Forensic Audit Reports of seven borrowers’ companies without the knowledge of the firm and did not give the papers and documents during his resignation. He threatened the firm and the other partners and demanded money to return the paper.

• Allegation number 4: According to the audited accounts, the respondent has overdrawn Rs 2,18,736 and Rs 3,87,902, which he did not return on the date of his retirement.

• Allegation number 5: Shah had recorded telephone communications with the complainant without his knowledge and sent them to other partners of the firm to cause mental stress to the complainant.

The Board of Discipline of ICAI dismissed the allegation numbers 3 and 4 after carrying out a detailed investigation. The respondent, CA Jayesh Vasantlal Shah, was given an opportunity of being heard on July 29, 2025 through a video conference, where he admitted the guilt. The board did not conduct any further investigation, as the respondent had already accepted the three allegations.

The ICAI Board of Discipline, after reviewing the facts and considering his admission, found him guilty under Clause (2) of Part IV of the First Schedule of the Chartered Accountants Act, and the board decided to reprimand the respondent.